August 29, 2019: The Board of Directors of Hascol Petroleum Limited has adopted a resolution recommending an increase in the Authorized Capital of the Company from Rupees 2.5 billion to Rupees 10 billion.
The decision has been placed for approval of the shareholders at an Extraordinary General Meeting, so as to enable the Company to subsequently announce and undertake a rights issue.
This development emerged came after the Board reviewed the extreme challenges to the prevailing business environment, particularly the impact of steep PKR devaluation, unprecedented increase in interest rates and drop in volumes on account of lower demand, all of which contributed to the half yearly financial results not being as per previous expectations.
The major shareholders are evaluating all the options related to supporting the liquidity and financial situation of the company. Also, the shareholders and management of the Company have engaged and will continue to engage with the Government authorities at all levels to address and find solutions for the policy level issues which have adversely affected the Oil Marketing industry.
The Board has also empowered the management to undertake necessary steps of reorganization of the Company’s existing finance facilities.
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